BASF begins commercial bio-butanediol production

MOSCOW (MRC) -- BASF has produced its first commercial volumes of 1,4-butanediol (BDO) from renewable raw material, and is offering this product to customers for testing and commercial use, as per Hydrocarbonprocessing.

The production process relies on a patented fermentation technology from Genomatica, based in California. The fermentation process uses dextrose as a renewable feedstock.

The quality of BDO based on renewable raw material is comparable to petrochemical-based BDO, according to the company.

BASF plans to expand its portfolio with selected BDO derivatives based on renewable feedstock, including polytetrahydrofuran (PolyTHF).

BDO and its derivatives are widely used for producing plastics, solvents, electronic chemicals and elastic fibers. The starting materials for the production of conventional BDO are natural gas, butane, butadiene and propylene.

As MRC reported earlier, this year BASF and China-based Xinjiang Markor Chemical unvelied their plans to set up two joint venture companies for the production of butanediol (BDO) and polytetrahydrofuran (PolyTHF), in Korla, Xinjiang Uygur, China. The JV firms are considering building a new BDO plant, with an annual capacity of 100,000 tonnes, and another facility with a capacity for 50,000 tonnes per annum of PolyTHF. These are expected to be commissioned in 2015.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. As for BDO and BDO-equivalents, BASF currently manufactures these products at its sites in Ludwigshafen, Germany; Geismar, Louisiana; Chiba, Japan; Kuantan, Malaysia; and Caojing, China, and has an annual capacity of 535,000 tonnes.
MRC

MOSCOW (MRC) -- Eastern Petrochemical (Sharq) has shut its No.4 monoethylene glycol (MEG) plant, reported Apic-online.

A Polymerupdate source in Saudi Arabia informed that the plant was shut on November 26, 2013 owing to technical issues. A restart date for the plant could not be ascertained.

Located in Al Jubail, Saudi Arabia, the plant has a production capacity of 700,000 mt/year.

As MRC informed previously, CNOOC and Shell Petrochemicals Co (CSPC) shut its MEG plant on 10 November, owing to mechanical issues. A restart date for the plant could not be ascertained. Located in Guangdong province, China, the plant has a production capacity of 320,000 mt/year.

Besides, Xinjiang Tianye Group is in plans to start a new MEG plant in August 2014. To be located in Xinjiang province, China, the plant will have a production capacity of 250,000 mt/year.
MRC

MOSCOW (MRC) -- China Petroleum & Chemical Corp., the nation’s biggest refiner known as Sinopec, started pipelines in Qingdao on 26 November that were undamaged after an explosion last week, which killed at least 55 people, reported Hydrocarbonprocessing.

The pipelines resumed operations after inspections, said Zhao Tong, an external Sinopec spokeswoman, who works for Brunswick Group. The Qingdao refinery will return to normal output "soon," she said.

The facility cut operations after the accident on Nov.22 and relied mostly on crude stored in tanks to keep the plant running, Zhao said.

As MRC wrote previously, Qingdao is one of China's largest crude oil import terminals, supplying at least two major Sinopec refineries - the Qingdao plant and Sinopec Qilu Petrochemical Corp - as well as many small, independent refineries. The explosion occurred after an oil leak led to a fire.

China Petroleum & Chemical Corporation (SINOPEC) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Sinopec is the worlds seventh biggest company by revenue.
Sinopec is China's largest manufacturer and supplier of major petrochemical products. It is the second largest producer of crude oil in China. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec has reported first-half 2013 net income of 30.281 billion yuan (USD4.85 billion), up 23.6% year over year.
MRC

MOSCOW (MRC) -- Italian Eni has acquired an operatorship stake in acreage in the Ukrainian sector of the Black Sea that includes the Subbotina oil discovery, said Upstreamonline.

The Milan-headquartered oil major will hold a 50% interest in the block, with partners state oil venture Nadra Ukrainy’s Vody Ukrainy subsidiary (35%), state gas player Naftogaz’s Black Sea arm Chornomornaftogaz (10%) and France’s EDF (5%).

While Eni did not specify the investment involved in the production sharing agreement, Minister of Energy Eduard Stavytsky was earlier quoted by the Ukrainian news agency UNIAN as saying the block would involve an outlay of USD4 billion.

The 1400-square kilometre patch lies off the eastern Crimean peninsula in the north-western Black Sea. It is home to the Subbotina oil discovery uncovered by Chernomornaftogaz in 2006.

Licenses for Abiha, Mayachna and Kavkazka - collectively known as the Pry Kerch block – are also part of the deal, and contain several oil and gas prospects, according to Eni.

The Italian explorer was one of the majors to lose out in bidding on a pair of Ukraine shale blocks last year, which were landed by Shell and Chevron.

US supermajor ExxonMobil and Russia’s TNK-BP also lost out on the USD10 billion deals for the Odessa and Yuzivska blocks.
MRC

MOSCOW (MRC) -- Imports of chemical products into Brazil fell by 2.3% to US$4.2bn in October compared to the same month last year, said Bnamericas.

Exports slipped by 3.8% to USD1.3bn. For the first 10 months of the year, imports were 9.2% higher than in the same period in 2012, at USD38.7bn, while exports were down 4.8% at USD11.9bn.

Compared to the month of September this year, chemical imports were 8% higher while exports rose by 6.8%.

In a statement, Abiquim's director of foreign trade, Denise Naranjo, said that Brazil's trade deficit in chemicals had stabilized in recent months as a result of the depreciation of the Brazilian real, which encouraged exports and was a disincentive to imports.

Because of the effects of the lower real, Abiquim reduced its forecast for Brazil's trade deficit in chemicals this year to USD32.2bn from its previous estimate of USD33bn.

According to Abiquim, thermoplastic resins are Brazil's most exported chemical product. However, exports of these resins was 10.7% lower than in the first 10 months of 2012, at USD1.7bn.

Imports of fertilizers, the most imported chemical product in Brazil, rose by 7.2% to USD6.9bn.
MRC